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Miels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units

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Miels Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 10,000 units of this part are as follows: $ 90,000 130,000 Direct materials Direct labor Variable factory overhead Fixed factory overhead Total costs 140,000 $420,000 Of the fixed factory overhead costs, $60,000 is avoidable. 4. Conners Company has offered to sell 10,000 units of the same part to Piels Corporation for $36 per unit. Assuming there is no other use for the facilities, Schmidt should A) make the part, as this would save $6 per unit B) buy the part, as this would save $6 per unit C) buy the part, as this would save the company $60,000 D) make the part, as this would save $2 per unit DO 5. Assuming no other use of their facilities, the highest price that Piels should be willing to pay for 10,000 units of the part is A) $420,000 B) $280,000 C) $340,000 D) $360,000

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